It also demanded setting up of inspection centres to check pesticide residues on imported agricultural commodities.
Citing the IB report, Crop Care Federation of India (CCFI) Chairman Rajju Shroff said that NGOs were working against developmental interests of the country.
"The recent IB report has vindicated that NGOs are motivated by vested interests and are working to ensure that agricultural sector remains primitive so that India becomes dependent on imports to sustain the growing needs of people."
Shroff also demanded that the government should make baseless allegations a punishable offence.
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Speaking on growth prospects of insecticide sector, Shroff added that another factor preventing the growth of chemical industry is absence of level-playing field between Indian companies and multi-national corporations.
"Currently, multinationals are able to import pesticide formulations into India without registering technical of formulation, thereby precluding Indian industry from getting registration for the technical, despite having capabilities," he added.
The CCFI in a presentation to the new government also stressed on the need to stop import of unregistered pesticides, to have single window clearance to boost manufacturing output and to ensure faster clearances by Central Insecticide Board and Registration Committee.